Objectives

The primary objective of this tender is to appoint a panel of service providers to manage, collect, and recover all outstanding debts owed to the South African Social Security Agency (SASSA) KwaZulu-Natal (KZN) region over a period of 36 months. This includes debts arising from social grant beneficiaries, employees, and third-party overpayments, with the aim of improving debt recovery efficiency, ensuring compliance with relevant legislation, and minimizing negative audit outcomes.

Scope

The scope encompasses:

• Provision of debt collection services for overdue accounts, including tracing, notification, negotiation, and legal recovery processes.
• Handling of debts related to social grants, staff overpayments, motor accidents, contraventions, theft, and asset losses.
• Pre-legal activities such as issuing letters of demand, telephonic and electronic communication, and negotiating repayment plans.
• Legal proceedings including summons, judgments, and execution steps in Magistrate and High Courts.
• Reporting, monitoring, and evaluation of debt recovery performance.
• Provision of hardware and software necessary for debt management and collection activities.

Technical Requirements

The technical requirements include:

• Demonstration of availability and functionality of an IT infrastructure capable of managing debt collection processes, including report generation and data management.
• Provision of a detailed project plan outlining methodology, timelines, and deliverables.
• Compliance with all applicable legislation, policies, and regulations related to debt collection and data security.
• Provision of proof of office ownership or lease agreements within South Africa.
• Implementation of internal control measures to verify and reconcile debt collection activities and payments.
• Insurance coverage for collection activities and compliance with legal standards.

Skills and Experience Requirements

The bidder must demonstrate:

• Extensive experience in debt collection services, with a proven track record of successful contract execution exceeding R1 million within the last five years.
• Availability of skilled resources, including trained debt collection staff, legal professionals (admitted attorneys with High Court rights), and project management personnel.
• Qualifications and registrations, such as membership with the Council for Debt Collectors, Law Society, or ADRA accreditation.
• Knowledge of applicable legislation (Debt Collectors Act, Magistrate’s Court Act, etc.) and government policies.
• Capability to manage debt collection information systems and infrastructure.
• Ability to develop and implement effective collection methodologies, risk mitigation strategies, and value-added services.